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Creditors Voluntary Liquidation

How to close an insolvent limited company

We can do everything to liquidate your company online and an in-person meeting is non essential unless requested by you.

Usually, the quickest and cheapest method to close a company with debts is liquidation. This process is called Creditors Voluntary Liquidation or “CVL”.

This decision to liquidate is taken by a majority of the company directors at a meeting.

The whole process from instructing your insolvency practitioner, to the date of liquidation usually takes about 10 to 14 days.

Liquidation does write off any Bounce Back Loans as they are not personally guaranteed. this is one of our most frequently asked questions with regards to the Creditors Voluntary Liquidation process.

Everything to liquidate can be done online and we send you the paperwork to sign via Adobe Sign, so you have your own copy. There is no need to print any documents and post them to us.

Positive’s of Liquidation:

  • It is quick – usually 10 days.
  • It is relatively cheap.
  • There is usually no creditors meeting.
  • There is no need to finish accounts or VAT/PAYE returns anymore.
  • It allows employees to claim redundancy from the UK Government fund.
  • It writes off unsecured creditors like bank Bounce Back Loans, CBIL’s loans below £250,000, suppliers, VAT, PAYE and other liabilities like business rates.
  • It does not automatically stop you being a director of another company.
  • We take over and manage all of the creditors for you.

Negative’s of Liquidation:

  • It does not clear creditors who have a personal guarantee like Funding Circle.
  • All of the company assets are used to pay back the company creditors, so shareholders are unlikely to get paid.
  • If you owe the company money you will be forced to pay it back.
CVL Process

What Happens Next?

We will send you a list of what we need. This includes a list of creditors, assets, employees and other financial information we need.

If you want to see the list as a PDF CLICK HERE.

If you’d like to discuss anything you can call us, we can arrange a virtual meeting or a meeting at our office or your premises. We then agree with you the target date of actual liquidation – usually within 7 plus days. We then prepare all of the paperwork for the directors to sign. As liquidation is a three-stage process this paperwork includes:

  • The directors meeting to decide to liquidate.
  • The notices to shareholders.
  • The notice to creditors.

The notice to creditors is for a deemed consent liquidation. This means there is no creditors meeting – although creditors can request one if more than 10% want a meeting. The meeting can be a video call or in person.

We prepare a report to creditors and shareholders to send out before the date of liquidation. We publish this report online with access by a password only.

We take the pressure off you during this period and deal with your creditors. We also help the employees make their redundancy claims from the Government.

The company then goes into liquidation on the target date.

The First Few Months

After the company has gone into liquidation, we carry out the following tasks:

  • Close any premises.
  • Collect any business records.
  • Collect in any assets such as equipment, stock, and debtors.
  • Close the company bank accounts.
  • Help employees make their claims for unpaid salary and redundancy from the Government.
  • Agree creditors’ claims.
  • Make a report to the Insolvency Service.

Our usual aim for a less complex liquidation is to close the case and have paid out any creditors by the anniversary date.

If you would like to know more about the five stage process over the life of a liquidation please download this TWO PAGE GUIDE or have a quick look at the two minute video below.

Creditors Voluntary Liquidation (CVL) Costs

CVL is a relatively cheap process compared to other insolvency routes such as Administration or a Compulsory Liquidation which may involve legal fees.

Kirks charge a fixed fee to liquidate the company of between £3,000 to £5,000 plus VAT (depending on complexity) and can be paid using company assets.

The lower end of the fee rate is charged for smaller companies with no employees and only a few creditors.

We or your chosen Insolvency practitioners are paid post liquidation (using company assets).

The Next Stage

Please contact us with any questions you have or if you would like to arrange a call or meeting.

David Kirk says:

“We provide a nationwide service and take care of everything. We act quickly and are helpful and supportive. We return your emails and telephone calls.”

You can also email David direct if you have any questions on

We offer quick liquidation for your business. Contact us directly to find out more.


“They promised a straightforward process and certainly delivered – I highly recommend the team at Kirks.”

Danielle F

“Kirks offered a cost-effective and reliable service. They were responsive to any queries/issues in the winding-up process – thank you.”

Patrick T

“A fixed fee arrangement provided us with reassurance and David explained the process clearly to us at the outset. A very professional service all round.”

David M

“Kirks provided a very efficient and cost-effective service. They offered support and advice throughout the process and made prompt payments. It was a very professional and helpful service.”

Richard T

“I had already met with a number of other insolvency practitioners none of whom I considered to be as clear cut and up front as David. The liquidation was executed quickly and professionally and I really am happy.”


Just a quick email to say a heartfelt thank you for your very calm, considered, expert advice regarding my circumstances on Tuesday. Things looked bleak before you explained my options much more clearly, in simple layman’s terms.
Rob Elliott (14th December 2021)



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David Kirk Portrait

David Kirk

Licensed Insolvency Practitioner